Why Is The Stock Market Crashing Right Now?

Added: 2026-05-15

[00:00:00]a super late upload, but really wanted to update you guys very quickly on what's going on during the overnight hours. If you guys have not been paying attention to the NASDAQ market, I totally get it. But as you see, once markets closed, markets close in the green today, also making new all-time highs. By the time we entered the overnight hours, all of a sudden, markets began to sell off. As of right now, they are down 87%. So, still less than 1%. Again, we won't be surprised if markets just happen to recover tomorrow if Trump sends out a tweet. But I just wanted to share the news that is currently during overnight hours driving prices lower. The first thing that you should understand is that the Nvidia news for those that have not seen chip export controls not discussed at USChina meeting is what Greer is telling Bloomberg.

[00:01:02]Well, what do we mean by that? Right? I thought Jensen being there, right, the CEO of Nvidia, I thought the whole point of that was for him to really kind of like break the ice with China and see if there is any, you know, way that they can tap into that market. So, according to this says US and China did not hold in deep in-depth uh talks on Washington's strict chip export controls against China. US trade representative Jameson Greer told Bloomberg, "This was not a major topic of discussion at the bilateral meeting. We did not talk about chip export controls at the meeting."

[00:01:43]But that's why Nvidia hit new all-time highs. Isn't that funny? I just thought I'd share that with you guys. And again, markets will shrug it off because with good news, and not even good news, with good optimism, markets will aggressively hit new all-time highs, right? We saw that past two days, super strong days for Nvidia. Nvidia's trading at that highest, most valuable market cap ever in history for any publicly traded company. All based off of optimism. But guess what? Even if the truth does come out that none of this was talked about, just like we've seen for the past seven weeks, it's like Trump's deal or no deal with the idea of a deal. Markets rally 5%. With the confirmation that there is no deal, markets correct a quarter of a percent. And then the cycle continues, right? Markets continue to push higher.

[00:02:36]As of right now, yes, markets are selling off, but this is a great reminder to not get ahead of yourself that, okay, well, this isn't really happening. Should we short Nvidia?

[00:02:47]Sentiment, in my opinion, is still too strong for semis. I hope markets begin to pull back, but hope is not something that you want to depend on in a market full of greed. And again, this is from coming from someone that is always willing to short the market if direction and sentiment support it. It's just been a little bit challenging lately. Um, the last thing that I wanted to quickly share with you is I think some of you that are really paying attention to the market will care about this. For those that really don't care or don't pay enough attention, then it won't really matter. The US 10-year Treasury is back above 4 and a.5%. So, if you're trying to take out a mortgage right now, ask your lender or your real estate friend.

[00:03:30]This is something that Trump will care about because it's the rate in which the US government borrows money against, right? So, the higher the rate this is or the higher this rate is, the more interest that the US government pays on the b on the money they borrow.

[00:03:49]It's all going up.

[00:03:52]This is not a good sign to have the 10-year Treasury at four and a half, to have the 30-year Treasury at over 5%.

[00:04:02]And this is happening not just in the US, but even in Japan.

[00:04:06]Think about it. We have bond yields going up there. That means that there's uncertainty in the ability or the risk of the US paying back its debt to some degree, right? Bond yields go up when investors want more because maybe there's a little bit more risk. Well, why would there be more risk now than before? Could it be our deficit at 39 trillion? Oh, no. No. What about the inflation reports that came out this week that markets ignored? We have PPI report, the producer price index report at the highest level for core PPI since 2022. Remember that 40-year high inflation? Remember that's what sparked the Federal Reserve to start raising interest rates because things got so terrible for the economy.

[00:05:01]They had to slow down everything and raise rates aggressively to justify what they did during the pandemic.

[00:05:11]We have a very weak labor market. We have inflation not just on the producing side of thing but also on the consumer side going up but markets don't care at least not right now because there's so much of a focus on semiconductors.

[00:05:29]Don't get me wrong there is a lot of future. There is a lot of opportunity in semiconductors but please just do not forget on the back end what's going on.

[00:05:41]Inflation is going up.

[00:05:44]Labor market is incredibly weak. And the likelihood of the Federal Reserve to cut interest rates is not very likely when interest rates or inflation continues to rise because cutting rates is inflationary.

[00:05:59]normally the stock market pushing up or the stock market selling off. Normally the administration doesn't normally care because it doesn't really impact the maybe average American when it comes down to the bond yields. I can reassure you this is the time that Trump cares most. This is where you would often see too late Jerome Pal tweets on Truth Social from Trump calling out Jerome Pal and begging Jerome Pal and the Federal Reserve to cut interest rates because again this directly hurts the pockets of the US government because that means that if these bond yields are going up they pay a higher rate and that's what hurts them the most because no one wants to pay a higher interest rate. So again, it's going to be very interesting to see. And while we're talking, NASDAQ market is still dropping. Fingers crossed. I hope markets continue to drop. I would love more deals to present themselves, but we'll talk a little bit more about this in tomorrow's live trading session. Just thought that some of you guys would like to know what's going on, but also what we can do to prepare. Remember what goes up when markets go down. There's SQQ, there's SPXS, which are inverse based ETFs. But remember, so much of this is happening overnight, that by the time the markets open, could they just begin to recover?

[00:07:30]Possibly. So again, we'll talk about this a little bit more during our live trading session. I hope to see you there. If you guys ever want to tune on in, we trade live every morning right at market open and it's the second link in the description down below. Appreciate your time like always. Let's make sure that we end the year on a green out.